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TMI Blog2020 (10) TMI 792X X X X Extracts X X X X X X X X Extracts X X X X ..... transactions. 2. The assessee in the present case is a Company, which belongs to Abhishek Chokhani Group. A search and seizure action under section 132 of the Income Tax Act, 1961 was conducted in the cases belonging to Abhishek Chokhani Group on 30.11.2012 including the case of the assessee. In pursuance to the said action, a notice under section 153A of the Act was issued by the Assessing Officer and assessment under section 153A/143(3) was completed for the year under consideration vide an order dated 26.03.2015, wherein the claim of the assessee for loss of Rs. 5,11,765/- in the commodity market transactions was disallowed by the Assessing Officer by treating the same as bogus on the basis of information received by him that the conce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the Ld. AO which have not been countered by the appellant either before the broker or in appeal, in my carefully considered view render the impugned transactions highly suspicious. I therefore do not give much credence to the alleged statement of the broker which the appellant states has been retracted later on by the filing of an affidavit. In my considered view of the matter, as the assessee has several transactions with the broker and had intimate knowledge about the broker and its functioning, nothing prevented the appellant by getting the broker as its witness, or placing a copy of the retraction on record. When transactions are rendered suspicious by their very nature, they are to be treated differently. To put it differently, the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7, the 'SMC' Bench of this Tribunal decided a similar issue in favour of the assessee vide paragraph no. 4 of its order, which reads as under:- "4. I have heard the arguments of both the sides and also perused the relevant material on record. It is observed that the claim of the assessee for the impugned loss incurred in trading in derivatives was disallowed by the authorities below mainly on the ground that the Director of the broker company in his statement had admitted that his company was indulging in providing bogus loss in currency derivatives as per the requirement of the clients. At the time of hearing before the Tribunal, the learned OR has laid emphasis on this aspect in support of the revenue's case. However, as con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions on account of brokerage, service tax and other charges levied by the broker aggregating to Rs. 13,13,205/- and accordingly the total loss as claimed by the assessee was to the tune of Rs. 13,10,688/-. As pointed out by the learned counsel for the assessee, this additional expenditure incurred by the assessee on account of brokerage, service tax and other charges was duly supported by the documentary evidence in the form of relevant bills issued by the broker and there was no reason whatsoever given by the Ld. CIT(A) for not accepting this explanation of the assessee. Keeping in view all these facts and circumstances of the case, I am of the view that the genuineness of the transactions made by the assessee on MCX Stock Exchange Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor of M/s. Marigold Vanijya P.Ltd. The said statement of Mr. Saraf was retracted at a later point of time. The CIT-A found satisfied that there was no corroborative evidence which supports the view of the AO that the said transaction was unexplained. Therefore, we find no additional evidence, which was filed before the CIT-A, but not before the AO. The CIT-A deleted the said addition only on the basis of material/evidence available on record, which were very much before the AO in the re- assessment proceedings. The case laws as relied on by the assessee before the CIT-A were relevant and applicable to the present facts of the case. The CIT-A has discussed the each case law thoroughly. Thus, the CIT-A was justified in deleting the addition ..... X X X X Extracts X X X X X X X X Extracts X X X X
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